The Fostering Network
Home
0800 0407675
  • About us
  • Thinking of fostering?
  • Already fostering?
  • Resources
  • Fostering Services

About us

Want to learn more about Fosterline? 

Learn more
  • What we stand for
  • Contact us
  • FAQs about Fosterline
  • Job vacancies

Thinking of fostering?

If you are thinking of fostering, we have a range of information for you to explore. 

Learn more
  • What is fostering?
  • Why foster?
  • Who can foster?
  • How do I become a foster carer?
  • Fostering quiz
  • Preparing to foster guide
  • Find a Fostering Service
  • Events

Already fostering?

We have a range of information to support you throughout your fostering journey. 

Discover more
  • Preparing to welcome a child into your home
  • Safeguarding
  • Facing an allegation
  • Celebrating and supporting diversity
  • Caring for a child with a disability
  • Caring for an autistic child
  • Attachment and fostering
  • Fostering legislation
  • Fostering and education
  • Fostering and finances
    • Fostering and tax
    • Fostering and National Insurance
    • Tax and other types of caring
    • Registering as self-employed
    • Completing a tax return
      • Simple method - Qualifying Care Relief (QCR)
      • Profit method
    • Fostering and benefits
    • Free childcare
  • Special Guardianship Order (SGO)
  • Training for foster carers
  • Advocacy for children and young people
  • Contact (family time)
  • Facing challenges
  • Complaints to fostering services
  • Transferring fostering services
  • Terms, reviews, and resignation
  • Fostering with pets
  • Fostering and insurance
  • Leaving care

Resources

We have a range of further resources for both current and prospective foster carers. 

See more
  • FAQs
  • Blog
  • Preparing to foster guide
  • Counselling
  • Other useful organisations

Fostering Services

Learn more about how we can support fostering services.

Learn more
  • Supporting foster carers
  • Recruitment and retention of foster carers

Our locations

  • England
  • Wales
  • Scotland
  • Northern Ireland

Connect with us

Facebook X Instagram LinkedIn
Please enter a search term

Useful pages

Find a fostering service Types of fostering Fostering and finances Contact us
Home Page Already fostering? Fostering and finances Completing a tax return

Simple method - Qualifying Care Relief (QCR)

  • Simple method - Qualifying Care Relief (QCR)
  • Profit method

This is the HRMC tax scheme for foster carers called Qualifying Care Relief (QCR).

It is a special tax scheme foster carers to work out if they have any tax to pay on their fostering payments, and involves a two-part calculation. 

Women At Table

The first element 

  • QCR is a fixed rate you are allowed tax relief on, which increases annually. Please ensure you use the correct year to calculate your tax
    - Qualifying Care Relief for tax year 2023-24: £18,140
    - Qualifying Care Relief for tax year 2024-25: £19,360
    - Qualifying Care Relief for tax year 2025-26: £19,690 
  • This amount is available if you have been a carer for the entire tax year. If you have only been a carer for part of the tax year, the amount is calculated on a pro-rata basis from the date you were appointed in the year. 



The second element

  • The second element is a weekly child rate of:
    - 2023-2024: £375 per week per child under the age of 11. £450 per week per child over the age of 11 (including any Staying Put young people)
    - 2024-2025: £405 per week per child under the age of 11. £485 per week per child over the age of 11 (including any Staying Put young people) 
    - 2025-2026: £415 per week per child under 11. £495 per week per child over the age of 11 (including any Staying Put young people) 

Your total payments from your fostering service for the tax year (6th April to 5th April), include fee/reward payments, retainer payments, holiday or birthday allowances, mileage expenses and any other expenses/payments for the year  

Your fostering service should provide you with an annual statement after the 5th April. 

Note: Part week counts as a full week Note that a tax week runs from Monday-Sunday, so if a child arrives on a Thursday and leaves on Tuesday, that counts as two ' tax weeks'.

There are 53 tax weeks in 2023-24, 52 weeks in 2024-5, and 53 weeks in 2025-6. 

Calculating your tax using QCR

  • Add together part 1 & 2. Your total fostering payments from your service and the QCR. 

  • If your total fostering income is less than your qualifying care amount for that year, then your taxable income is deemed as NIL - no tax to pay.  

  • If your income is over the qualifying amount, the excess is treated as your taxable income. 

Couple On Phone And Laptop

Personal allowance

  • Every UK resident has a personal tax allowance.  

  • This is the amount of income you can receive each year, including any taxable profit from fostering, without having to pay tax on it. 

  • The personal allowance is in addition to the QCR threshold.  

  • The Personal Allowance for most people is £12,570 for 2023-24 (£12,570 for 2024-25) - you may need to check yours. 

  • If a foster carer has profit from their fostering, they still might not have to pay any tax if they have not used some/all of their personal allowance.
     

Meeting At Home

Exceptional expenses

  • QCR does allow a foster carer to add to their QCR threshold if they are in receipt of any exceptional expenses. HMRC regard these foster carers as 'specialist foster carers'.

  • If a carer looks after a child with a disability and buys specialist equipment, they may be able to make a claim by adding the amount to their fostering tax threshold. Receipts will need to be kept.
  • HRMC’s guidance can be found here.
Man Writing
Next Profit method
The Fostering Network
The Fostering Network
Department for Education

About us

What we stand for

Job vacancies

Contact us

Facebook X Instagram LinkedIn